One trader turned $9,000 into $5 million in just one month by investing in LAUNCHCOIN. Previously called PASTERNAK, LAUNCHCOIN has surged over 348% in the past 24 hours, causing its market cap to skyrocket to over $230 million. But what is behind LAUNCHCOIN's explosive increase?
LAUNCHCOIN Soars: Market Value Exceeds $230 Million
LAUNCHCOIN has become the center of attention as its value skyrocketed over 348% in just 24 hours. With a market cap exceeding $230 million and a 24-hour trading volume of $126 million, LAUNCHCOIN is exhibiting strong growth momentum in the market. The price chart shows the almost vertical growth trajectory of this coin over the past seven days, reaching $0.241.
LAUNCHCOIN is a token related to Ben Pasternak, the founder of Clout—a SocialFi platform built on Web3 technology. PASTERNAK has been rebranded as Launch Coin on Believe (LAUNCHCOIN) after Clout upgraded its brand to Believe, aiming to unify the token name and position the project in the market.
The combination of Web3 technology and the SocialFi model has created a unique appeal for LAUNCHCOIN, especially in the context of the growing interest in Solana-based projects.
Traders and Whales Are Making Huge Profits
The meteoric rise of LAUNCHCOIN has generated massive profits for early investors. According to a post on X by Lookonchain on May 14, a trader spent $9,075 to buy 20.3 million LAUNCHCOIN tokens a month ago. That investment is now worth $4.7 million, corresponding to an astonishing profit of 515x.
This trader is not the only one making a profit. Other whales have also recorded impressive gains. One whale spent $91,000 to buy 20.31 million LAUNCHCOIN tokens a month ago, and their unrealized profit has now exceeded $3.4 million.
Meanwhile, another whale invested $367,000 to buy 17.66 million LAUNCHCOIN tokens three months ago when the price was nearly zero. That investment has now yielded an unrealized profit of over $2.3 million.
These figures highlight that LAUNCHCOIN is not just a price phenomenon but also a significant profit opportunity for early investors. However, such rapid growth raises questions about sustainability and potential risks, especially in a volatile market like cryptocurrency.
Potential Risks
While LAUNCHCOIN has generated massive profits, its rapid price increase comes with significant risks. Traditionally, coins backed by celebrities tend to be very volatile and susceptible to price manipulation through "pump-and-dump" schemes. The case of MIKAMI is a notable example.
Data from GMGN shows that LAUNCHCOIN's liquidity remains low, with only $4.2 million in the liquidity pool, while its market cap has skyrocketed to over $230 million. This discrepancy could make it difficult for investors to sell large amounts of tokens, leading to potential slippage risks.
"A #LAUNCHCOIN trader is living the cryptocurrency dream. In just one month, he turned $9,000 into $4.7 million. But here's the issue... The token only has liquidity of $1.8 million; how can he cash out? This is why checking the liquidity of any token before investing is crucial," shared a user on X.
Furthermore, the 348% increase in 24 hours signals a strong rally but may also set the stage for a significant correction. Therefore, investors should conduct thorough research and assess the project's transparency and liquidity before getting involved. Investors should also explore appropriate investment strategies to optimize future profits.